The bank will now count preferred shares with a carrying value of $2.9 as Tier 1 capital under the deal terms, said the North Carolina-based lender.

The new deal means it will reduce the amount of new preferred stock that the bank would have to issue to get to the capital ratio required by regulators. It’s basically in the banks’ interest to get this done, say industry analysts.

The agreement will “benefit our Tier 1 capital and leverage ratios,” and “we do not expect any impact to our financial condition or results of operations as a result of this amendment,” said the bank in the filing. The change is pending approval in May by the bank’s shareholders.

The change forces the bank to wait at least five years to redeem the preferred stock which is advantageous for Buffett and in return Berkshire Hathaway will give up a dividend provision that gives the right to recover missed payments.

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